At the beginning of current year, Exodus Company purchased a machine for 8,000,000 and received a government grant of 2,000,000 toward the capital cost. The machine is to be depreciated on a straight line basis over 10 years and estimated to have a residual value of 500,000 at the end of this period. Required: Prepare journal entries for the current year assuming the grant is accounted for as deferred income and deduction from asset.

At the beginning of current year, Exodus Company purchased a machine for 8,000,000 and received a government grant of 2,000,000 toward the capital cost. The machine is to be depreciated on a straight line basis over 10 years and estimated to have a residual value of 500,000 at the end of this period. Required: Prepare journal entries for the current year assuming the grant is accounted for as deferred income and deduction from asset.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 1BD

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